MRL2601
ASSIGNMENT 1
DUE DATE: MARCH 2026
, MRL2601 ASSIGNMENT 1 MEMO 2026
DUE MARCH 2026
Question 1
1.1 Ben is a young aviation specialist who is passionate about aircraft and
aviation law. In his professional pursuits, he has decided to establish a company
or form a partnership with a colleague that would enhance the global aspect of
aviation within the area of corporate law. Ben decides to approach you for advice
about a partnership and a company. Advise Ben on the difference between a
partnership and a company.
(Textbook Chapter 15 paras 3–4.3; Joubert v Tarry and Co 1915 TPD 277.)
When starting a business, one of the most important decisions an entrepreneur must
make is choosing the appropriate legal structure. Ben, as a young aviation specialist
aiming to expand the global aspect of aviation within corporate law, must carefully
consider whether a partnership or a company would best suit his professional goals.
Although both structures allow individuals to conduct business and generate profit, they
differ significantly in terms of legal personality, formation, liability, ownership, continuity,
authority, and regulatory requirements.
One of the most fundamental differences between a partnership and a company is legal
personality. A company has a separate legal personality, meaning it exists
independently from its shareholders. As a juristic person, the company can own
property, enter into contracts, incur debts, and institute or defend legal proceedings in
its own name. This separation provides protection to the shareholders because the
liabilities of the company are not automatically the personal liabilities of its members.
ASSIGNMENT 1
DUE DATE: MARCH 2026
, MRL2601 ASSIGNMENT 1 MEMO 2026
DUE MARCH 2026
Question 1
1.1 Ben is a young aviation specialist who is passionate about aircraft and
aviation law. In his professional pursuits, he has decided to establish a company
or form a partnership with a colleague that would enhance the global aspect of
aviation within the area of corporate law. Ben decides to approach you for advice
about a partnership and a company. Advise Ben on the difference between a
partnership and a company.
(Textbook Chapter 15 paras 3–4.3; Joubert v Tarry and Co 1915 TPD 277.)
When starting a business, one of the most important decisions an entrepreneur must
make is choosing the appropriate legal structure. Ben, as a young aviation specialist
aiming to expand the global aspect of aviation within corporate law, must carefully
consider whether a partnership or a company would best suit his professional goals.
Although both structures allow individuals to conduct business and generate profit, they
differ significantly in terms of legal personality, formation, liability, ownership, continuity,
authority, and regulatory requirements.
One of the most fundamental differences between a partnership and a company is legal
personality. A company has a separate legal personality, meaning it exists
independently from its shareholders. As a juristic person, the company can own
property, enter into contracts, incur debts, and institute or defend legal proceedings in
its own name. This separation provides protection to the shareholders because the
liabilities of the company are not automatically the personal liabilities of its members.
